AFA Challenges AMR’s Motion For Approval Of The CPA With Republic

[inflightboi175]

American Eagle unions want to delay American Airlines deal with Republic Airlines

wonder if the pilot's union will follow suit?

AFA Challenges AMR’s Motion For Approval Of The CPA With Republic

February 7, 2013
At 3:00 PM ET, this afternoon, AFA filed a motion with the Southern District Bankruptcy Court of New York objecting to the previously filed motion by AMR, requesting court approval of a Capacity Purchase Agreement (CPA) with Republic Airlines.

As you are aware, on January 24th American Airlines announced that it had agreed to a CPA with Republic Airways. The proposed CPA is subject to approval of the bankruptcy court and the hearing on that approval is set for February 14, at 11:00 AM in New York City.

AFA’s motion questions the proposed CPA citing AMR’s lack of consideration of the impact on the operations of American Eagle. AMR dominates decision-making at Eagle, and American Eagle does not have separate representation in the court proceedings. Therefore, it has apparently fallen to the labor unions, which represent the employees of American Eagle, to articulate its interests. The CPA deal focuses on the presumed advantage to American Airlines without any consideration of its impact upon American Eagle and its Flight Attendants.

The proposed acquisition of 53 new 76-seat jests by Republic, represents about 20% of the current American Eagle fleet. Such a deal could represent a material threat to the job security and compensation of AFA members at Eagle.

Furthermore, the CPA is inappropriate on the eve of a merger with US Airways. The Company’s motion for approval makes no mention of its impact upon a proposed merger. Does US Airways support the proposed CPA? Is it a reasonable business judgment to weigh down a carrier with a billion dollar capacity obligation immediately prior to a merger with another carrier? All good questions, none of which were addressed in AMR’s motion to approve the CPA.

AFA negotiated for all of our Members in good faith with management – and because we were compelled by the powerful (pro-management) bankruptcy laws, we made cuts and sacrifices. We did this with the assurance that if we achieved cost parity with other lower-cost carriers, we would remain competitive and our fleet would grow. Management’s assurances can no longer be believed.

The motion filed today by AFA sends a message that we will fight back and not take this lying down!

http://afaeagle.com/news/2013/2/7/afa-challenges-amrs-motion-for-approval-of-the-cpa-with-republic

 

[inflightboi175]

just read they did
UPDATED 5:30 P.M.: The three unions representing American Eagle’s employees asked the U.S. Bankruptcy Court to delay a deal in which competitor Republic Airlines would operate jets under the American Eagle brand.

The deal, signed Jan. 23, would have Republic Airlines operate 76-seat jets to feed American Airlines flights, primarily into and out of Chicago’s O’Hare International Airport. The initial deal involves 53 jets, although Republic could acquire another 47 to operate on American’s behalf in the 15-year deal.

The Association of Flight Attendants, the Transport Workers Union and Air Line Pilots Association filed by their objections before the 4 p.m. EDT deadline to respond to the AMR motion. U.S. Bankruptcy Judge Sean Lane is scheduled to consider the matter Thursday, Feb. 14.

In a filing Thursday, the AFA acknowledged that the Republic deal is allowed by a new collective bargaining agreement (CBA) approved by American Eagle flight attendants.

“But whether there is a legitimate business justification for AMR to enter into the Proposed Capacity Purchase Agreement with Republic Airlines only weeks after the AFA CBA was approved by this Court and while a proposed merger is pending between AMR and US Airways is an entirely different matter,” the filing said.

AMR owns both American and AMR Eagle, which operates American Eagle Airlines Inc. and Executive Airlines Inc. under the name American Eagle.

The AFA filing said AMR and American proposed the Republic deal apparently “with no consixderation of its impact on the operations of American Eagle. Since AMR dominates decisoni making at American Eagle, its wholly owned subsidiary, and American Eagle does not have seprate representation in this proceeding, it has apparently fallen to the labor unions who represent the employees of American Eagle to articulate its interests.”

Anything that increases flying elsewhere would impact the prospects of American Eagle and its employees, the filing said, saying it expects that many routes flown by its members would be taken over by Republic Airlines.

“The loss of these routes will impact the ability of AFA members to obtain flying opportunities and receive profit sharing payouts, bid for available routes, earn sick pay accrual, vacation pay accrual and health plan coverage,” the AFA said.

As to the merger, the filing said that “it is likely that within a 30- to 60-day period, the potential merger with US Airways will either go forward or not, and the Agreement can be considered without concerns for its impact on the potential merger.

“In that context, to saddle American Airlines with a 15-year Agreement at this point seems senseless,” the AFA added.

In its motion, ALPA said AMR and American want to act “at a time when the overall strategic direction of the Debtors appears open to question – as to whether there will be a merger with US Airways or not – and without any stated consideration of the relation between this substantial proposed transaction and the ultimate post-emergence strategic direction” of American and AMR.

The TWU, which represents American Eagle’s ground workers, didn’t raise the merger issue. Instead, it said the work should have gone to its members.

“TWU-represented employees have made enormous sacrifices in agreeing to substantially amended collective bargaining agreements,” the TWU said in its filing.

“TWU members have worked too hard and sacrificed too much to restructure American Eagle’s business, including agreeing to modified collective bargaining agreements after challenging negotiations extending over a period of time, for American to now outsource work that could and should be performed by American Eagle and its employees,” the TWU said.

American announced the Republic deal Jan. 24, and filed a motion asking Judge Lane to approve it. Thursday, Feb. 7, is the deadline to file objections to that motion. Lane is schededuled to hear arguments Thursday, Feb. 14.

 

[Speedtape]

Today is February 16th. And the verdict/outcome of Judge Lane's ruling is?

 

[CRJ puppy]

Today is February 16th. And the verdict/outcome of Judge Lane's ruling is?

Delayed until feb 26 due to merger announcement on the 14th.